Required information [The following Information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses $ 1,200,000 420,000 780,000 600,000 Net operating income Average operating assets $ 180,000 $ 600,000 At the beginning of this year, the company has a $137,500 Investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 220,000 60 % of sales $ 99,000 The company's minimum required rate of return is 20%. 11. What is last year's residual income? Residual income S 6,550